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Atlantic House Dynamic Duration Fund
- 01 mins 44 secs
Learning: Unstructured
Designed for an ever-changing inflationary environment, the Atlantic House Dynamic Duration Fund aims to deliver capital growth over the medium to long term through a systematic and signal-based investment strategy, that is designed to outperform in a wider range of inflation environments than a conventional bond fund.
To learn more about the fund and hear from the fund managers behind its creation, register to attend the upcoming Q&A webinar.
The duration of a portfolio of bonds can create substantial risks for investors when the interest rate environment changes; it is notoriously difficult for fund managers to identify these shifting currents.
The systematic approach adopted by this fund offers the potential for performance in both an inflationary and deflationary environment. This offers the opportunity to increase the reliability of a portfolio’s bond exposure as a diversifier to equities. It gives the fund the flexibility to act to protect the portfolio against large bond drawdowns during inflationary environments.
During periods where the fund’s key signals suggest rising inflation is expected the portfolio will tilt towards assets positioned to benefit from this, whilst during deflationary periods it tilts towards conventional fixed income exposure.
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Atlantic House investments helping multi asset investors build better portfolios.
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When inflation is low, investors gain a real diversification benefit from bonds. However, when inflation is rising bonds can lose their diversification benefits.
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Introducing the Atlantic House Dynamic Duration Fund, a signal driven investment process that shifts between fixed income and inflation following three key signals in inflation and fixed income
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signal. Number one, the inflation trend if inflation goes down, fixed income becomes more attractive. If inflation goes up, fixed income becomes less attractive.
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Signal number two real yield, a higher yield on inflation linked bonds suggests lower inflation in the future, which means fixed income could be a good investment.
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A lower real yield suggests higher inflation favoring inflation swaps
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signal number three policy.
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If inflation is below target, central banks are less likely to increase interest rates, favoring fixed income investing. If inflation is above target, investors may benefit from inflation swaps
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the Atlantic House Dynamic Duration Fund following the signals with a purely systematic strategy for better multi asset outcomes.
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